Doug Cornelius on compliance for private equity real estate
Deutsche Bank marketed a robust, independent due diligence process to identify, evaluate, and select best-in-class asset managers. But failed to disclose that it only recommended hedge funds that shared their management fees with the bank. DB disclosed that it might receive revenue sharing and actually disclosed the amount it received in the subscription agreement. DB … Read more »
The Justice Department released a refreshed set of guidelines on how prosecutors should evaluate corporate compliance programs. The Principles of Federal Prosecution of Business Organizations in the United States Attorney’s Manual describe factors that prosecutors should consider in conducting an investigation of a corporate entity, determining whether to bring charges, and negotiating plea or other … Read more »
I’m in Chicago today at the SCCE Regional Compliance & Ethics Conference. I’m speaking in the morning on compliance and corporate governance. If you’re also attending, grab me for a cup of coffee. Meanwhile, here are some of the compliance-related stories that recently caught my attention. Whistleblower Challenges SEC Over Delay on Award Decision by … Read more »
The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) issued a risk alert on compliance issues related to privacy regulations. The alert comes from recent examinations of broker-dealers and registered investment advisers. Regulation S-P is the primary SEC rule regarding privacy notices and safeguards. The Risk Alert doesn’t cover all of the … Read more »
To show the markets that the Securities and Exchange Commission is not just about slapping around wrong-doers, but also trying to help people navigate the securities laws, the SEC’s FinHub published a framework for analyzing whether a digital asset is a security. The framework is not intended to be an exhaustive overview of the law; rather, … Read more »
These are some of the compliance-related stories that recently caught my attention. Companies Need to Pay More Attention to Everyday Unethical Behaviorby Yuval FeldmanHarvard Business Review Numerous studies have documented the prevalence of practices such as stealing office supplies, inflating business expenditures reports, and engaging in behaviors that raise conflicts of interest. While these may sound … Read more »
As cryptocurrency issuance declines, the Securities and Exchange Commission is continuing to clean out the fraud, mis-steps, and foolishness of coin promoters. These actions have carried over to the services and investment managers involved in coin offerings. Usman Majeed wanted to make his money by running a fund that invests in cryptocurrency. He ran into … Read more »
It is generally bad to have one client trade with another client. Rule 206(3)-2 imposes some very specific requirements and leaves you with a final twist: This rule shall not be construed as relieving in any way the investment adviser or another person relying on this rule from acting in the best interests of the … Read more »
The Yucaipa Master Manager didn’t properly inform investors of all costs tied to preparing tax returns. Yucaipa resolved the case without admitting or denying the SEC’s allegations. Under the fund documents for the Yucaipa American Alliance private equity funds, the cost of preparing the funds’ tax tax returns are an expense of the funds. Yucaipa … Read more »
These are some of the compliance-related stories that recently caught my attention. Conflicts of interest for “the little people”by Jeff KaplanConflicts of Interest Blog The conclusion of the Mueller investigation does little to resolve the much broader set of concerns regarding President Trump’s conflicts of interest. These are too numerous to be chronicled on this … Read more »